Pension Plan Benefits

A pension plan is a type of financial product designed to provide income during retirement. You make regular contributions to the pension plan. These contributions can be made through periodic premiums or lump-sum payments, depending on the plan. The contributions are invested in various financial instruments such as stocks, bonds, or mutual funds, depending on the pension plan's investment strategy. Upon reaching retirement age, the accumulated corpus is used to provide regular income. This can be in the form of annuities or withdrawals, depending on the plan’s structure.